Press Release: ICT completes acquisition of system integrator RASTER

ICT Automatisering NV (ICT) announces that today it has completed the purchase of 100% of the shares of RASTER, a Dutch based system integrator. The intended acquisition marks a significant step in the growth strategy of ICT. The acquisition will have a direct positive impact on ICT’s earnings as of the closing date. The acquisition of RASTER will substantially enrich ICT’s Industrial Automation activities and will further improve ICT’s position as a total solutions provider and open up new markets and customers. The combination of the Industrial Automation activities of both companies offers a strong platform for partnerships with the main industrial software vendors, such as Schneider Electric, Siemens and Rockwell. ICT Group (ICT Automatisering N.V.) is an independent provider of industrial automation services. Our specific industry knowledge of various markets, enables us to realize innovative solutions. Over 700 passionate technical specialists are working for the ICT Group. The following subsidiaries are member of the ICT Group: ICT Netherlands (ICT Automatisering Nederland B.V.), Strypes Bulgaria (ICT Nearshoring B.V.), Improve Quality Services and InTraffic (50%). For more information: www.ict.eu About Raster RASTER IA BV is a project-oriented system integrator in the area of industrial process automation. Main activities are production automation, software development and consultancy. RASTER delivers its services to multinationals and Dutch companies with international activities active in Oil & Gas, offshore, heavy lifting, chemicals, pharmaceuticals and defense sectors. RASTER-Products BV imports, distributes and develops industrial automation products. (www.raster.com and www.raster-products.com) For further Information: Femmy de Rijk, PR & Communications, ICT Group +31 (0)88 908 2000 / + 31 (0)6 10 51 3745. E-mail: Femmy.de.rijk@ict.eu

Press Release: FIRST- HALF YEAR RESULTS 2015 ICT AUTOMATISERING

REVENUE GROWTH AND IMPROVEMENT IN EBITDA SIGNIFICANT STEPS REALIZED IN EXECUTION STRATEGY Key developments:

  • Revenue in H1 2015 up 7% at € 34.6 million, mainly attributable to the acquisition of Strypes Bulgaria
  • H1 2015 EBITDA improved to € 3.2 million; 9.2% of revenue (H1 2014: € 2.4 million, 7.5% of revenue)
  • Acquisition of Strypes Bulgaria completed on 6 January 2015. Intensive collaboration between ICT Netherlands and Strypes Bulgaria bears fruit.
  • Price Purchase Allocation on Strypes completed, intangibles identified and valued, resulting in period amortization of € 0.9 million in H1 2015
  • Letter of intent signed end of June to acquire industrial systems integrator RASTER

Key figures (*)

(in millions of €) H1 2015 H1 2014 Change
Revenue 34.6 32.4 6.8%
Revenue Added Value 31.8 29.2 8.9%
EBITDA from continuing operations 3.2 2.4 33.3%
Amortization / depreciation 1.1 0.2  
Operating result from continuing operations 2.1 2.3  
Net profit from continuing operations 1.5 1.7  
Result after taxes from discontinued operations                                – -0.7  
Net profit 1.5 0.9  
(in €)      
Earnings per share (**) 0.17 0.11  

(*)  In 2014, in conformity with IFRS 5, ICT Germany classified as “Discontinued operations” following the decision to divest the operations and is presented as a separate line item in the income statement, being the total loss post tax of the German operations for the period as ‘result from discontinued operations’. (**)  Based on the average number of outstanding ordinary shares. Jos Blejie, CEO of ICT Automatisering N.V.: “In the first six months of this year, our focus has been on the execution of our strategy. The acquisition of near-shore company Strypes in Bulgaria is an important step in this execution. It provides us access to lower-cost quality solutions based on rapid development techniques, and a competitive edge in today’s market. Intensive collaboration between The Netherlands and Bulgaria is showing good results. The intended acquisition of RASTER that we announced end of June this year, will substantially enrich our Industrial Automation activities and will further improve ICT’s position as a total solutions provider and open up new markets and customers. These actions support us in creating a stable platform from which we can further roll out our strategy and can grow our business sustainable. Although in the first half of 2015 ICT Netherlands was confronted with a slowdown in demand in the markets served by industrial automation, we do envisage a recovery of demand in the second half of 2015.” Strategy The company will continue its strategy of offering innovative effective product/market solutions, enriched with state-of-the-art technology. Each unit offers market specific solutions in which ICT has a high level of expertise, which allows the company to offer its clients greater added value. This puts ICT in a position to execute projects for its clients independently, making use of the specialist expertise and experience it has gained from previous assignments for its clients. As a result, ICT is able to realise innovative solutions for its clients that are also both repeatable and scalable. The acquisition of new business and the development of new emerging markets are key focus areas of ICT’s strategy. Acquisition of Strypes Bulgaria On 6 January 2015, ICT acquired 100% of the shares of Strypes Bulgaria. Strypes Bulgaria is a specialist in embedded software development based on modern agile methodologies. The total purchase price of the acquired shares, including the earn-out amounts to € 5.4 million. Goodwill resulting from the transaction amounts to approximately € 1.4 million (after the implementation of the Purchase Price Allocation). Acquisition of remaining shares Improve Quality Services According to the original contract the remaining 10% of the shares of Improve was acquired on 1 January 2015. Letter of Intent signed to acquire RASTER End of June 2015, ICT signed a letter of intent to acquire 100% of the shares of Raster Holding BV (RASTER), a Dutch based system integrator. The intended acquisition marks a significant step in the growth strategy of ICT. RASTER operates in the domain of industrial automation and more specifically in the area of industrial process automation, production automation, software development and consultancy. Segmentation (IFRS 8) The acquisition of new business and the development of new emerging markets are key focus areas of ICT’s strategy, which resulted in a new organizational structure that came into effect in Q1 2015. Therefore ICT decided to change the management control of the company. ICT reassessed how to apply IFRS 8 with respect to segment disclosure in its financial statements. In the past the breakdown of cash-generating units (CGU(s)) was aligned with the segmentation of ICT. This alignment is also reassessed. Taking into account how management manages and monitors ICT NL’s business units, future impairment testing will take place at (total) ICT NL level, resulting in partial aggregation of CGU levels as from 2015, in line with the organizational changes and in line with IFRS requirements. Financial developments H1 2015 ICT’s revenue in the first half of 2015 was € 34.6 million compared to € 32.4 million in the first half of 2014. This increase was mainly attributable to the acquisition of Strypes Bulgaria (ICT Nearshoring BV) which realised € 2.5 million of revenue. ICT Netherlands is confronted with postponement of projects and realised revenues of € 30.1 million compared with € 30.7 million in the first half of 2014. As a result of these postponements ICT realised lower licences and materials sales than in the first half of 2014. In the industrial markets we were also confronted with lower than expected secondment demand from customers. Intensive collaboration between ICT Netherlands and Strypes Bulgaria resulted in additional growth in Bulgaria from 54 fte on acquisition date up to 85 fte per 30 June 2015. This growth is mainly attributable to the acquisition of new customers. In the segment other both Improve Quality Services and ICT Poland realised revenue growth due to business generated at new customers. Improve Quality Services realised revenue growth of around 15 % (H1 2015: € 1.9 million / H1 2014 € 1.6 million). ICT Poland is working closely together with ICT Netherlands in the Automotive markets. The realised EBITDA (earnings before interest, taxes, amortization and depreciation) amounted to € 3.2 million in the first half of 2015, compared with € 2.4 million in the same period of 2014. Strypes Bulgaria contributed to this improvement with a realised EBITDA of € 0.7 million. Improve Quality Services and ICT Poland also contributed to this improvement with € 0.3 million. The improvement was partly off-set by lower than expected results in the Netherlands due to postponement of projects and transferred activities to Bulgaria. The Acquisition of Strypes Bulgaria was completed on 6 January this year. In compliance with IFRS 3, as a result of a Preliminary Purchase Price Allocation, order backlog and customer relations have been valued. As a result the total amortization amounts to € 0.9 million in the first half of 2015 (€ 0.543 million one off on backlog and € 0.325 million on customer relations). Customer relations have been valued at € 3.3 million to be amortized over a period of 5 years as from acquisition date. The amortization on customer relations amounts of € 0.6 million a year. The operating result from continuing ordinary operations in the first half of 2015 amounted to € 2.1 million (H1 2014 € 2.3 million).  The acquisition of Strypes positively impacted the operating margin (€ 0.7 million). The amortization on Strypes Bulgaria as described above (€ 0.9 million) had a negative impact. The costs related to the consideration of strategic options, including the due diligence and transaction costs for Strypes and Raster, amounted to € 0.3 million (H1 2014: € 0.3 million). Taxes in the first half of 2015 amounted to € 0.4 million compared with € 0.6 million in the first half of 2014. Net profit was € 1.5 million, compared with a profit of € 0.9 million in the first half of 2014. The balance sheet total decreased from € 49.4 million at year-end 2014 to € 49.1 million at 30 June 2015 mainly as a result of the net effect of dividend paid of € 2 million and net profit of € 1.5 million realized in the first half of 2015. The net cash flow from continuing operations amounted to € 0.8 million negative in the first half of 2015 (H1 2014: € 0.4 million negative) as a result of a relatively high amount of creditors on the balance sheet per year end 2014, to be paid in the first half of 2015. The cash position per 30 June 2015 decreased to € 4.1 million (June 30, 2014: € 7.5 million). This was mainly due to the payment of the acquisition price for Strypes Bulgaria and dividend paid. Composition of the Supervisory Board The term of the Chairman, Mr. Van der Raadt and member Mr. Fröschl expired in May 2015.  The Annual General Meeting of Shareholders reappointed Mr. Van der Raadt and Mr. Fröschl for an additional four-year term on 13 May 2015. Outlook ICT continues to execute its strategy offering innovative and effective product/market solutions, enriched with state-of-the-art technology, combining autonomous growth with growth through acquisitions. Barring unforeseen circumstances, ICT expects for the full year 2015 an improvement in EBITDA (operating profit before depreciation and amortization from continuing operations) between 25%-35% compared to 2014. Condensed consolidated interim financial statements

ICT and Brabantse Ontwikkelings Maatschappij (BOM) acquire stake in GreenFlux

System integrator and technical services provider ICT and the Brabantse Ontwikkelings Maatschappij (BOM) have signed a letter of intent (LOI), stating their intention to invest in GreenFlux, a charging point operator and services provider for electric vehicles. The investment will help GreenFlux to strengthen its position in the fast-growing market for electric vehicles and give the company the opportunity to accelerate the introduction of innovative charging services. The cooperation with BOM and ICT creates a unique combination of expertise in electric transportation, the energy sector and innovative IT solutions.

Strong growth in electric vehicle use

The use of electric vehicles is set to grow enormously in Western Europe. In addition to the growth in the number of electric cars, battery capacity is also expected to increase, which will in turn accelerate the growth in charging capacity.

ICT

Aart Wegink, Sales Director ICT Emerging Solutions: “ICT has made a large number of investments in solutions for the energy market in recent years and is involved in a number of Smart Energy projects such as USEF, Stad van de Zon (City of the Sun) and PowerMatching City. We have noted that solutions for the management and control of decentralised electricity generation and consumption have become essential. The growth in electric vehicle use will continue to increase the dynamics of energy consumption. The combined investment with BOM and the cooperation with GreenFlux is a good fit with ICT’s proposition in the energy market.”

BOM

The Brabante Ontwikkelings Maatschappij boosts the economy of the Brabant region by encouraging cooperation between companies, public sector bodies and other organisations, and by attracting foreign companies, developing business locations and making risk-bearing investments in new and growing innovative companies.

GreenFlux

GreenFlux has been active in the market for electric vehicle use since 2012. In recent years, GreenFlux has developed a unique platform together with ICT. This has created opportunities for innovative services such as Smart Charging, which makes the platform extremely suitable for larger charging environments.

Press Release: ICT signs letter of intent to acquire system integrator RASTER

ICT (ICT) announces that today it has signed a letter of intent to acquire 100% of the shares of Raster Holding BV (RASTER), a Dutch based system integrator. The intended acquisition marks a significant step in the growth strategy of ICT. The acquisition will have a direct positive impact on ICT’s earnings as of the closing date, anticipated in August 2015. RASTER operates in the domain of Industrial Automation and more specifically in the area of industrial process automation, production automation, software development and consultancy. RASTER is a project-oriented system integrator with reputable customers in defined segments. In addition RASTER imports and distributes industrial equipment in partnership with industrial software vendors. RASTER is also the owner of its proprietary software development platform (‘foundation software’). RASTER, with some 20 highly educated professionals, is well-known and respected in our markets, and brings ICT significantly closer to realizing its ambitions in Industrial Automation markets. RASTER delivers its services to multinationals and Dutch companies with international operations active in Oil & Gas, offshore, heavy lifting, chemicals, pharmaceuticals and defence sectors. The combination of the Industrial Automation activities of both companies offers a strong platform for partnerships with the main industrial software vendors, such as Schneider Electric, Siemens and Rockwell. RASTER will facilitate the ambitions of ICT to grow with self-developed solutions. The purchase consideration comprises a cash payment and an amount in ICT shares. Further details will be disclosed at closing. During 2012 – 2014 RASTER realised profitable revenues of around EUR 4 to 5 million per annum. Jos Blejie, CEO of ICT: “I am delighted that the founders of RASTER are willing to join forces with ICT. The acquisition of RASTER will substantially enrich our Industrial Automation activities and will further improve ICT’s position as a total solutions provider and open up new markets and customers.” Jan Dekker, CEO of RASTER: “By joining ICT, RASTER will enter a new stage in its development. Together the combination can deliver the full breadth of capabilities in the Industrial Automation market. The transfer of ICT shares to the founders of RASTER underlines the trust we have in a long term relationship with ICT.” RASTER will stay an independent business unit on its current location and under its current label within ICT. The management of RASTER remains committed.

Press Release: Q1 Results 2015

ICT reports improvement in revenue and operating result in Q1. Key Developments in first quarter: Revenue in Q1 2015 up 7% at € 17.1 million, fully attributable to the acquisition of Strypes Bulgaria. Q1 2015 operating result improved € 0.2 million to € 1.3 million. Acquisition of Strypes Bulgaria completed on January 6th.

Key figures (*)

(in millions of €)

Q1 2015

Q1 2014

   D  

Revenue

17.1

16.0

+ 7,3%

Operating result from ordinary operations

1.5

1.4

 

Exceptional charges (**)

0.2

0.3

 

Operating result

1.3

1.1

(*) Q1 2015 figures includes the figures of Strypes Bulgaria (consolidated as from the beginning of January). Q1 2014 figures are restated for ICT Germany regarding discontinued operations (IFRS 5). (**) This concerns corporate development expenses related to the consideration of strategic options, such as the acquisition of Strypes Bulgaria. Financial developments ICT (ICT)’s revenue in the first quarter of 2015 was € 17.1 million compared to € 16.0 million in the first quarter of 2014. This increase was fully attributable to the acquisition of Strypes Bulgaria. Excluding Strypes Bulgaria, revenue was in line with last year. The operating result amounted to € 1.3 million in the first quarter, compared with € 1.1 million in the same period of 2014. Strypes Bulgaria contributed to this improvement with positive results in line with expectations. This improvement was partly off-set by lower than expected project results in the Netherlands. Operational developments All organisational entities managed to record positive results. Machine & Systems, Logistics and Automotive performed in line with expectations. Industrial Automation is confronted with postponement of projects in combination with lower than expected secondment demand from customers. Improve Quality Services According to the original contract ICT agreed to acquire the remaining 10% of Improve in January 2015. ICT completed its acquisition of the remaining shares of Improve Quality Services BV and now owns 100% of the company. Improve Quality Services realized positive results in line with expectations. Outlook ICT continues to execute its strategy offering innovative and effective product/market solutions, enriched with state-of-the-art technology, combining autonomous growth with growth through acquisitions. ICT expects for 2015 a further improvement in the operating profit compared with 2014 (operating profit from continuing operations).

Annual Report 2014 ICT Automatisering available online

Today ICT NV (ICT) published its Annual Report for 2014. The report can be found here. ICT invites its shareholders to the Annual General Meeting of Shareholders (AGM). The meeting takes place on May 13, 2015 in the Novotel Rotterdam, KP van der Mandelelaan 150. The meeting will start at 10 AM. The call for the AGM, the agenda and explanatory documentary is published on the website.

Press release: ICT and InMotion annouce partnership

Today ICT (ICT) and Stichting Automotive Technology InMotion (InMotion) announce a partnership. InMotion is an automotive race team that consists of students of Eindhoven University of Technology and Fontys University of Applied Sciences. InMotion aims to participate in the 24h race of Le Mans in 2017 with their IM01 race car. Furthermore they set out to break the all time record on the famous Nürburgring Nordschleife. As predecessor of the IM01, InMotion is currently developing the IM/e race car which embodies an all-electric test platform for technologies to be used on the IM01, e.g. several active systems.News_20150310-2 Together ICT and InMotion will develop the Electronic Control Units (ECU’s) for the complete IM/e race car. ICT provides its Model based development Production Platform: Motar, consisting of the ECU’s hardware and platform software, while InMotion develops the control algorithms (application software) for these ECU’s.News_20150310-1 Colin Diederen, Public Relations Manager InMotion: “We are proud to team-up with an innovation-driven company like ICT. With their platform, we can create the perfect ECU and architecture for our test vehicle. This is a major step towards the development of our Le Mans racer, the IM01”. Eeuwke Wielinga, ICT’s Business Unit Manager Automotive & Mobility: “We are excited to contribute to the goal of InMotion to deliver the first race car on the roadmap to the IM01 in 2015. Both InMotion and ICT share the passionate drive of technological innovation and the desire to apply groundbreaking technology on cars. Being at the forefront of many of the latest developments we successfully developed the Motar-platform for the automotive industry. ICT’s Motar-platform consists of both hardware and software. The platform offers seamless integration of MATLAB / Simulink control algorithms on production class automotive hardware built up on an AUTOSAR architecture. As such it forms an excellent basis for automotive control development on various HW platforms.” For further information about InMotion: www.inmotion.tue.nl Further information about ICT’s Motar-platform

Press release: Annual Results 2014

Key developments in 4th quarter and full year 2014

Revenue up 4% at € 63.0 million in 2014, as a result of more licence sales and more direct employees. Operating margin from ordinary continuing operations after exceptional items comparable to 2013 at 7%. In the second half of 2014 ICT announced and completed the divestment of its German activities to Alten GmbH. ICT strengthened its partnership with LogicNets Inc. and announced the acquisition of Strypes Bulgaria, a specialist in embedded software development. Sharp increase in net result to € 5.0 million (2013: loss of € 1.1 million), largely due to tax benefit resulting from the liquidation of ICT Software Engineering GmbH. For 2015, ICT expects an further improvement in operating profit from continuing operations compared with 2014.

Key figures

(in millions of €)

FY 2014

FY 2013*

Q4 2014

Q4 2013*

Revenu

63.0

60.8

3.7%

16.7

16.3

2.3%

Operating result from ordinary continuing operations (after exceptional items) (**)

4.4

4.2

1.7

1.2

Result after taxes from discontinued operations

(2.8)

(1.1)

Taxes

4.3

(1.1)

Net result

5.0

(1.1)

(in €)

Earnings per share

0.56

(0.13)

Dividend per share

0.23

0.15

53.3%

(*)  In conformity with IFRS 11, effective 1 January 2014, InTraffic (as a joint venture) is no longer consolidated in the statement of comprehensive income in revenue, costs and EBIT but is presented as a single line item in the consolidated statement of comprehensive income under financial income. The 2013 figures have been accordingly restated for comparison purposes. In conformity with IFRS 5, ICT Germany classifies as “Discontinued operations” following the decision to divest the operations and is presented as a separate line item in the income statement, being the total loss post tax of the German operations for the period as ‘result from discontinued operations’ (**)  Operating profit excluding impairment charges, including exceptional items.

Jos Blejie, CEO of ICT Automatisering N.V.: “2014 was a year of change for ICT. Not only did we divest our German activities, we have also taken important steps in the execution of our strategy. The acquisition of the strategic stake in our partner LogicNets brings us closer to becoming a multi-disciplinary system integrator. The acquisition of near-shore company Strypes in Bulgaria that we announced at the end of last year was another important step of the presented strategy. It provides us access to lower-cost quality solutions based on rapid development techniques, and a competitive edge in today’s market.  All these actions support us creating a stable platform from which we can further roll out our strategy and can grow our business sustainably. In 2015, we therefore expect to see a further improvement in operating profit from continuing operations compared with 2014.”

Notes to the results

ICT’s revenue came in at € 63.0 million in 2014, compared with € 60.8 million in 2013. As a result of licence sales and the increase in operational hours due to the increased number of direct employees in the Netherlands, ICT was able to realize 3.7% higher revenue than 2013. The license sales were due to the partnership ICT formed with LogicNets. The verticals Machine & Systems (including Energy and Healthcare) and Industrial Automation showed an increase in revenue. The other verticals and Improve Quality Services booked revenue which was in line with 2013.

The cost of sales, mostly material, expenses and outsourced work, increased to € 5.7 million (2013: € 5.0 million), mainly due to increased LogicNets licences.

Largely due to the growing average number of employees, personnel expenses increased to € 40.2 million in 2014 (2013: € 38.4 million). The focus on the reduction of indirect costs continued. In 2014, we renegotiated rental agreements and reduced personnel costs at support functions. Full effect of this will be attributable in 2015.

The operating profit from continuing ordinary operations before exceptional items in 2014 amounted to € 5.2 million (2013: € 5.6 million). This decrease was mainly due to pressure on secondment rates and increased expenses in marketing and sales. The margin was also impacted by the successful recruitment drive for young professionals, who were, as expected, not immediately fully productive.

As in 2013, ICT incurred exceptional costs in 2014 related to the investigation and realisation of strategic combinations. In 2014 these exceptional costs amounted € 0.8 million (2013: € 1.4 million).

The operating profit from continuing ordinary operations after exceptional items in 2014 amounted to   € 4.4 million (2013: € 4.2 million). The operating margin was 7%, in line with 2013.

Despite numerous attempts in recent years to make its German business profitable, ICT concluded in the first half of 2014 that the German activities would not contribute to a positive result in 2014. In view of this and the fact that in Germany ICT did not have the necessary critical mass to serve the multinational corporations, ICT decided to discontinue its German activities. As a result of the decision to divest, ICT Germany is recognised as “Discontinued operations”. The result from this divestment of the operations and the consequent liquidation amounted to a loss of € 2.8 million in 2014 of which € 0.8 million from ordinary operations (2013: loss of € 1.1 million), € 2.0 million from the consequent liquidation of the German subsidiaries.

Improve Quality Services was again critically assessed for goodwill impairment purposes. In the previous two years, ICT booked an impairment of € 4.9 million on the goodwill for Improve Quality Services B.V., due to the development of results over the previous years and the expectation that its profitability would improve albeit at a slower pace than previously believed feasible. In 2014, the results improved versus 2013, but were again lower than our expectations. ICT expects future improvement to be in line with the improvement realised in 2014, resulting in an additional impairment of € 1.2 million.

Corporate income tax related to continuing business activities excluding exceptional items in 2014 amounted € 1.4 million. Combined with a deferred tax benefit of € 5.6 million in the Netherlands, as a result of the liquidation of the German subsidiary, corporate income taxes in 2014 amounted to € 4.3 million positive (2013: € 1.1 million negative).

Net profit for the year amounted to € 5.0 million, compared with a loss of € 1.1 million in 2013. This translates into earnings per ordinary share of € 0.56. The number of outstanding ordinary shares stood at 8,747,544 on 31 December 2014, unchanged from a year ago.

Q4 2014 results

Revenue in Q4 2014 increased slightly to € 16.7 million compared to the last quarter of 2013. An operating result from continuing ordinary operations of € 2.3 million was realized, a slight decrease compared to last year.

Balance sheet structure

Mainly as the result of the addition of the net profit of € 5.0 million for 2014, shareholders’ equity increased to € 34.0 million. The balance sheet total increased by € 2.9 million to € 49.4 million at year-end 2014, from € 46.5 million at year-end 2013, as a result of the investment in LogicNets and the deferred tax asset related to the decision to liquidate the German entity. Solvency (shareholders’ equity/total assets) improved to 68.7% at year-end 2014 from 65.2% at year-end 2013, which represents a very sound basis.

Cash flow development

The net cash flow from continuing operations amounted to € 3.5 million positive in 2014 (2013: € 4.0 million positive) as a result of positive operating profit and a low tax rate due to income tax reimbursement.

Developments within Verticals

Revenue at the Machine & Systems Vertical (including Energy and Healthcare) was up 4.4% at € 29.5 million, from € 28.2 million in 2013. Revenue growth was due to LogicNets License sales and more demand from customers. However, last year saw continued strong pressure on secondment rates. The relatively small Healthcare and Energy Verticals are developing in line with expectations, while the Healthcare Vertical acquired a number of interesting contracts. The operating result was lower than in 2013 and came in at € 2.6 million (2013: € 3.1 million). The operating margin was lower in 2014, largely as a result of pressure on secondment rates and slightly lower productivity. The drop was partly compensated by increased operating margins as a result of LogicNets license sales.

The revenue at the Logistics Vertical was in line with 2013 at € 9.3 million. During the second and the third quarters of the year, this vertical saw less demand from clients, which had a negative effect on productivity.  As a result the operating result came in at € 0.6 million in 2014 (2013: € 1.0 million).

The Industrial Automation Vertical saw revenue increase by 9.0% to €15.9 million, from € 14.6 million in 2013, due to increased demand for projects, and as a result of project related material sales. The operating result improved to €1.5 million in 2014 from € 0.9 million in 2013, due to the higher customer demand, which in turn resulted in growth in the number of employees and higher productivity. In addition, this vertical also improved its project execution, which led to improved results compared with 2013.

In 2014, revenue at the Automotive Vertical amounted to € 5.6 million, in line with 2013. The vertical realized an operating result of € 0.3 million, which was lower than in 2013 (€ 0.5 million). Demand from customers was in line with 2013. Productivity was particularly high in the first three quarters of 2014, with a slight drop in the fourth quarter. Results were lower than in 2013 due to the hiring of new young professionals, who were not immediately fully productive. In the fourth quarter of the year, results were also negatively impacted as a result of work transferred to Alten GmbH in Germany, the company to which ICT sold its German Automotive activities.

The revenue at Improve Quality Services came in at € 3.2 million in 2014, at the same level as last year. With € 0.3 million, the operating result is better than last year (2013: € 0.2 million), as Improve’s training activities picked up in the Netherlands.

In the first half 2014, the performance of InTraffic B.V. (50/50 joint venture) was lower than expected due to a delay in orders. In the second half of 2014 InTraffic managed to recover. ICT’s share in the net profit for 2014 is € 0.3 million (2013: € 0.3 million).

Personnel

The total number of employees at year-end 2014 was 4% higher than at year-end 2013. This was mainly due to the recruitment of (young) direct professionals. For 2015, we expect the growth in the number of FTEs to be in line with our revenue development.

Dividend

It is proposed to the General Meeting of Shareholders that a dividend will be paid out for the 2014 financial year at the amount of € 0.23 per share in cash based on the number of ordinary shares outstanding at year end 2014. This represents a pay-out ratio of 40% of the net profit, in line with the dividend policy.

Significant events after the balance sheet date

On 6 January 2015, the Group acquired 100% of the shares and voting interests of Strypes Bulgaria. Strypes Bulgaria is a specialist in embedded software development based on modern agile methodologies. The remaining 10% of the shares of Improve was acquired on 1 January 2015 for the amount of € 250,000.

Composition of the Supervisory Board

The term of the Chairman, Mr. Theo van der Raadt and Mr. Friedrich Fröschl expires in 2015.  The Board intends to submit a proposal to the Annual General Meeting of Shareholders on 13 May 2015 to reappoint Mr. Van der Raadt and Mr. Fröschl for an additional four-year term.

Outlook

ICT’s focus in 2014 was on the execution of its strategy. ICT took additional steps to put its house in order, the most significant of which was the sale of ICT’s Germany-based activities. In the second half of 2014, ICT strengthened its strategic partnership with LogicNets. In January 2015 ICT acquired and obtained control in Strypes, a next-generation agile near-shoring company in Bulgaria. ICT will continue its strategy of offering innovative and effective product/market solutions, enriched with state-of-the-art technology, combining autonomous growth with growth through acquisitions. As a result of the above, for the full year 2015 we expect a further improvement in the operating profit from continuing operations compared with 2014.

Cautionary statement

This press release contains forward-looking statements. Forward-looking statements are always based on assumptions and estimates relating to uncertain events over which ICT Automatisering N.V. has no control. They concern, for example, measures taken by the Dutch and other governments, currency movements, price fluctuations, changes in law and regulations, legal precedents and market developments. ICT Automatisering N.V. would like to stress that the contents of this press release are based on the information that is currently available. The reality can always deviate from expectations for the future. ICT Automatisering N.V. has no obligation to update the statements contained in this document, unless required by law.

Annexes: Extracts from Consolidated Financial Statements 2014

  • Consolidated statement of total comprehensive income
  • Consolidated balance sheet
  • Consolidated statement of changes in equity
  • Consolidated statement of cash flows
  • Other financial information

Click here to download the Annex of the Annual Resuls of 2014

Q3 results 2014 ICT Automatisering

ICT reports flat third quarter revenues

Full year outlook reiterated

  • Revenue in Q3 2014 in line with last year at € 14.2 million
  • Operating result from continuing operations in Q3 came in at € 0.7 million (Q3 2013: € 0.8 million)
  • Sale of the German activities completed
  • Management reiterates expectation of improved operating result from continuing operations for the full year 2014 compared to 2013

Key Figures

(in € millions) Q3 2014 Q3 2013 Δ 9 months 2014 9 months 2013 Δ
Revenue 14.2 14.3 – 1% 46.6 44.5 + 5%
Revenue Added Value 13.1 12.9 + 1% 42.2 40.9 + 3%
Operating result from continuing operations 0.7 0.8   2.9 3.0  

(*) In conformity with IFRS 11, effective 1 January 2014, InTraffic (as a joint venture) is no longer consolidated in the statement of comprehensive income in revenue, costs and EBIT but is presented as a single line item in the consolidated statement of comprehensive income under financial income. The 2013 figures have been accordingly restated for comparison purposes. In conformity with IFRS 5, ICT Germany classifies as “Discontinued operations” following the decision to divest the operations and is presented as a separate line item in the income statement, being the total loss post tax of the German operations for the period as ‘result from discontinued operations’

Financial developments

ICT (ICT) announces revenues in the third quarter of 2014 came in at € 14.2 million, from € 14.3 million in the third quarter of 2013. The third quarter is traditionally a lesser period due to the summer holidays, with in addition this year more young professionals not yet fully productive. Revenue over the first nine months of the year amounted to € 46.6 million compared to € 44.5 million over the first nine months of 2013. As a result of licence sales and the increase in operational hours facilitated by the increased number of direct employees in the Netherlands, ICT was able to realise 5 % higher revenues than in the comparable period in 2013. The operating result from continuing operations came in at € 0.7 million in the third quarter, compared with € 0.8 million in the same period of 2013. The operating result from continuing operations in the first nine months of 2014 was in line with the first nine months of 2013 and amounted to € 2.9 million. The operating margin decreased due to the significant outlays made in marketing and sales. In addition the successful recruitment drive for young professionals, that understandably were not immediately fully productive, impacted the margin. ICT has completed the sale of its German activities to Alten GmbH, a German subsidiary of Alten SA. As a result of the divestment, ICT will liquidate its German subsidiary, ICT Software Engineering GmbH. As a consequence of the liquidation there will be a deferred tax benefit to be recognized, on which ICT is in discussions with the Dutch tax authorities. Further to the Letter of Intent signed end of August, ICT entered into a Strategic partnership with LogicNets in the second half of October. This strategic partnership comprises a distribution and implementation partner agreement for Western Europe and the acquisition by ICT of a 20% stake in LogicNets inc.

Outlook

ICT will continue to focus on the execution of the strategy combining autonomous growth with growth through acquisitions. Based on the backlog of projects and the experience that the fourth quarter of the year is generally the best quarter of the year in our business, we continue to expect that 2014 will represent an improvement in the operating profit from continuing operations compared with 2013 (€ 4.2 Million).